Proprietary Software

There are several casino software giants in the industry now days, names like Playtech, Microgaming, Rival, RTG (Real Time Gaming) and others.

Nevertheless you can always find proprietary software which was created independently for a casino brand.

Proprietary software is an independent casino software solution which was developed by the casino operator for its own use and not for licensing purposes.

Proprietary software has its pros and cons for the player and for the casino brand but first we will go over the reasons for a casino to develop its own proprietary software:

1. Flexibility – When you take a license with one of the giant casino software developers, what you see is what you get. This means that if you wish your software to look differently, feature a game which is not there and more, most chances that you will not be able to do so or it will take a lot of time to get there.

2. Cost – A license cost a lot of money. When you take a casino software license from one of the big guns you will have to share your revenue with them. It can sometimes get to 50% of your earnings – and we didn’t even get to the profit yet. With a proprietary software you have your onetime costs of developing the software, probably support and bug fixing and then any additional features will cost you but it’s one time and you won’t have to share anything with anyone.

3. Stand out of the others – Did you notice most of the online casinos look the same? That’s right – Since the online casinos are distributed between the different casino software providers they all look the same, just a different design. This means that the one with the biggest marketing budget will be more profitable in the short term. With proprietary software you can have a saying that you are different. It’s up to you, the way you develop your software.

4. Licensing – If you took the step and developed your own solution, you can now start licensing others who are interested in having their own online casino solution. This is how the giants started. With their own solution first and then they started giving licenses.

The Pros and Cons of proprietary software:

On the player’s side – Pros:

– Different platform, different games
– Personal support – the big casino software providers have a shared support center for all the licensees. With the proprietary software providers you will get a support for the single brand only.

Cons:

– Since the brand stands on its own there’s a risk that the brand is not a trusted online casino. This is a risk the player has to take since there are no other brands and no big company standing behind this brand.
– Software malfunctions, errors failures – Since this software is only used by one brand, it might have some errors. This risk is minimal with the bigger software providers as the software is used by many licensees and most likely that any error was already fixed by the casino software provider.

On the licensee’s side (or software owner) – Pros:

– Flexibility – This was already discussed.
– Instant solutions and fixing – The proprietary software operator doesn’t have to wait in line to have his issues attended.
– The ability to grant licenses to other operators.

Cons:

– Having to setup an operation – The software owner has to take care of player support, financial processing and integration to the software, a technical support team and other issues having to do with the operation of an online casino.
– Certifying the software – Since the software is not known it has to get a certification that it is Random Number Generator (RNG).
– Building a reputation – You have to convince the players that your software and casino is honest and that you run a trusted online casino. When taking a license from the big software providers you can simply state that you as a casino operator are powered by the casino software provider.

We have seen some small operations running on proprietary software which didn’t survive as most of them will not make it unless they will start handing out licenses to cover for the cost and justify an online casino operation.

That said, proprietary software brings us innovation and changes the status quo set by the big software provider which have the same look and feel – it’s time for something different.